topic how to enter final K1 in Investors & landlords

how to enter final K1

askadis — Fri, 12 Mar 2021 16:35:17 GMT

I just received a final K1 for a real estate partnership. The Beginning Capital Account is negative, -$7,000. The next line shows a Capital Contribution of $6,500 and then there is a small positive contribution contribution of $500 from this year's operation. The ending Capital Account is $0. How do I enter this? Does it generate passive income or ordinary income?

Re: how to enter final K1

Irene2805 — Fri, 12 Mar 2021 17:00:01 GMT

Just enter the K-1 for the partnership as it appears on the form you received. The capital account adjustments themselves do not generate income.

TurboTax CD/Download

Click on Federal Taxes > Wages & Income [In TT Self-Employed: Personal > Personal Income > I'll choose what I work on.
Under Other Business Situations, click on the box next to Schedules K-1, Q.
Click Yes on the next screen, Schedules K-1 or Q.
On the Tell Us About Your Schedules K-1 screen. Click on the Start/Update box next to Partnership.
If you have already entered K-1 information, you will see the Partnership/LLC K-1 Summary screen. Click Add Another K-1 to enter your information (or click on Edit to continue with the existing form entry).
If you haven't started entering K-1 information, continue through the screens, entering the requested information.

TurboTax Online

Click Wages & Income.
In the S-corps, Partnerships, and Trusts section, click the Start/Update box next to Schedule K-1.
Continue with step 4 above.

Re: how to enter final K1

askadis — Sat, 13 Mar 2021 11:16:50 GMT

I had been lead to believe that since I had used loses to offset income in prior years, that I would effectively have to now recognize these losses as taxable gains. This is a really old partnerships from decades ago when there were real estate tax shelters.

Re: how to enter final K1

askadis — Mon, 19 Apr 2021 20:45:43 GMT

I was told by the accountant at the partnership that there would be recapture for the losses that I took in prior years. From year to year changes in capital accounts to impact tax liabilities, however bring the capital account from negative $24,998 to $0 generates $24,998 of income. Where would I enter this?